DELAWARE - A new Delaware law changes how transportation impacts from development are reviewed as the state works to streamline its permitting process.
Gov. Matt Meyer ceremonially signed House Bill 450, known as the ROAD-DE Act, at Legislative Hall. Meyer signed the legislation into law July 13.
The law replaces the existing daily-trip threshold for traffic impact studies with a standard based on 500 peak-hour trips. It also creates statewide transportation impact fees. The fees are calibrated by county, and revenue from the fees generally remains in the county where it is collected.
The law exempts Downtown Development Districts from traffic impact study requirements.
Certain housing financed by the Delaware State Housing Authority can also qualify for transportation impact fee reductions or waivers.
“For too long, businesses, housing developments, and infrastructure projects have faced lengthy delays, making it harder to create jobs and meet our housing needs,” said Sen. Jack Walsh, lead Senate sponsor of HB 450. “With HB 450, we’re cutting through red tape, and improving coordination to create a more predictable, transparent, and accountable permitting process that attracts investment, creates jobs, increases housing availability, and strengthens our economy.”
The governor's office says permitting for new development can take more than two years, adding time and costs to projects before construction begins.
“Delaware is one of the fastest-growing states in the nation, but in many cases, our permitting process - particularly for infrastructure projects - hasn’t kept pace with that growth,” said Rep. Bill Bush. “The ROAD DE Act cuts through some of the delays that have added unnecessary time and cost to projects, while making sure developers help pay for the impact of that growth.”
Initial implementation guidance has been released, and the administration has been holding town halls and training sessions with local governments.
Additional transportation and local implementation requirements take effect in 2027.
The ROAD-DE Act was signed alongside Senate Bill 23, the Housing for Every Delawarean Act, which includes affordable housing planning requirements and establishes by-right review for residential projects that already comply with local zoning requirements.
